No. of Recommendations: 0

Thank you for your sympathy.

>(1) mom will work,

She plans to keep working, so she'll always be in a higher tax bracket than capital gains tax.

>(2) mom needs more income now,

She doesn't need any money right now.

>(3) mom needs a lump sum now,

No, she doesn't need that right now, either.

>(4) mom might pay more taxes,

More taxes for what? For cashing in on the death benefit of the annuity? Certainly she'll do that. I figure there are two options:
1. Cash in right now. So we pay income tax level taxes on the
money, then invest it however we'd like and pay capital gains
tax on future earnings.
2. Let it go, she'll pay income tax level taxes when she retires

>(5) mom's comfort with investing in any particular product,

She has limited investing experience, less than I do. But at least I come to the motley fool every now and then. I'm willing to help (or completely manage) or we'd give it to an investment adviser that my parents trust.

Seems like given this situation, annuities are only a bad solution. What's the UP-side, there must be an UP-side.

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